Stocks are surging higher around the world on news that the U.S. and Iran have agreed on a deal to bring their four-month war to an end.
In premarket trading, the technology-heavy Nasdaq (NDAQ) Composite index is up more than 600 points or 2%. The blue-chip Dow Jones Industrial Average is up 440 points.
And the benchmark S&P 500 index has gained 1.22% in early trading on June 15. It is a similar story overseas, with Japan’s Nikkei index up 5% on the day and trading near record levels.
Markets are also jumping higher across Europe, with benchmark exchanges in France and Germany each up more than 1%.
Investors are cheering after the U.S. and Iran each declared an immediate and permanent termination of military operations in the Middle East.
The two countries are planning to hold an official peace agreement signing ceremony in Switzerland on June 19.
U.S. President Donald Trump confirmed that a deal had been reached on social media, writing: “The deal with the Islamic Republic of Iran is now complete.”
Markets are now anticipating that the Strait of Hormuz waterway near Iran will reopen to commercial shipping.
The strait, where 20% of the world’s crude oil is shipped, has been closed since the U.S. and Israel attacked Iran on Feb. 28.
Oil prices are falling sharply on news of a peace deal being reached, with Brent crude, the international standard, down 5% and trading near $80 U.S. a barrel.
Iran is expected to reopen the Strait of Hormuz within the next 30 days.
European nations, in response to the peace deal, said they are willing to lift sanctions on Iran in exchange for the country restricting its nuclear program.
Among individual stocks, SpaceX (SPCX), which held its initial public offering (IPO) on June 12, is up 6% in premarket trading as investors allocate capital to technology growth stocks.
Tech Insider
